Minerals Report - International Seabed Authority

Mr. Malnic said that the mining operation would be very close to
shore. He also said that the model is based on having a small operation on a
nearby island, and utilizing a low-cost mill for grinding. He pointed out that
there was no need for a plant that is even vaguely similar to a typical
terrestrial mine. With regard to the ship, Mr. Malnic said that cost estimates
are based on a ship in position in Papua New Guinea. Mr. Malnic said that
the cost for barges is based on hiring them from local barge firms. He said
that the grab to be used on the ship is to be contracted.
In reaction to Mr Malnic’s statement that ore grades are declining at
land-based deposits, another participant was of the view that grades have not
been declining over the years and that it is the opposite that has taken place.
This participant said that the largest VMS deposits in Calamares in Cyprus
would not have been economical at all to mine today. He also said that the
grades in a VMS deposit today have to be much higher than they were 10 or
20 years ago.
Mr. Malnic used the grades of newly established copper mines that he
said were decreasing each year to register his disagreement. He however said
that the point is the capacity of seafloor massive sulphides to compete against
land-based deposits. In this regard, he said that there is an advantage in
every area from energy consumption to capital expenditure, and that seafloor
massive sulphides deposits to are better placed to respond to the ongoing
decline in metal prices.
Another participant, noting that Mr. Malnic had said that it was
relatively easy to find high-grade massive sulphides wanted to know how this
is done.
Mr. Malnic said that the process is to follow the large plumes of
smoke. He said that a single plume could cover up to 100 square kilometres
of the area. Once the plume is found, Mr. Malnic said that it is followed back
to a topographic source that looks structurally right.
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